TSMC May Revenue Rises 39.6% to NT$320.5 Billion

On June 10, Taiwan Semiconductor Manufacturing Company (TSMC) released its May financial results, reporting a monthly revenue of NT$320.516 billion. While this represents an 8.3% decrease from April, it marks a remarkable 39.6% increase compared to the same period last year, setting a new record for May revenue in company history.

TSMC's revenue is primarily reported in US dollars, and fluctuations in the New Taiwan dollar (NTD) exchange rate impact its financial performance. Specifically, every 1% appreciation of the NTD can reduce TSMC's gross margin by approximately 0.4 percentage points, reflecting currency-related challenges in profitability.

During the April 17 earnings call, TSMC projected second-quarter revenue to range between US$28.4 billion and US$29.2 billion. The midpoint estimate indicates a 12.8% increase over the first quarter, exceeding analyst expectations of a single-digit growth rate near 6%. The company also forecasted gross margins between 57% and 59%, with operating margins ranging from 47% to 49%.

Chairman and CEO C.C. Wei emphasized the anticipated revenue rebound in Q2, driven by robust demand for the advanced 3nm technology node. Furthermore, the ongoing surge in AI applications continues to fuel growth in TSMC's wafer foundry 2.0 segment, underlining the company's strategic positioning in emerging markets.

Despite recent uncertainties related to tariff policies, Wei noted that customer confidence remains stable with no observed shifts in purchasing behavior. He reaffirmed TSMC's full-year revenue guidance of mid-20% growth in US dollar terms, projecting an increase between 24% and 26%, centered around 25%.

Regarding the tariff situation, Wei indicated that the company expects more clarity in the coming months and will continue closely monitoring potential impacts on end-market demand. TSMC remains focused on prudent business management amidst ongoing uncertainties, with strong confidence in surpassing wafer foundry 2.0 annual growth targets by 2025.